Frequently Asked Questions

HMRC's flat rate (Approved Mileage Allowance Payments) for 2025/26 is 45p per mile for the first 10,000 business miles and 25p per mile after that.

To claim it:

• Keep a mileage log recording the date, destination, purpose, and miles for each business journey
• Multiply your total business miles by the appropriate rate
• Include the total in your Self Assessment return as a business expense

You can't claim mileage and actual vehicle running costs at the same time — it's one or the other. The flat rate is usually simpler and works well for most people.

Yes, if you work from home as part of running your business. There are two ways to claim.

The simplified flat rate: HMRC allows a fixed monthly amount based on the number of hours you work from home each month — £10 for 25 to 50 hours, £18 for 51 to 100 hours, and £26 for over 100 hours.

The actual cost method: you work out the business proportion of your household bills (mortgage interest or rent, utilities, broadband, council tax) based on the number of rooms and hours used for work.

The flat rate is simpler; the actual method tends to result in a higher deduction if your bills are significant.

The main things you can't claim are:

• Personal costs such as everyday clothing, even if you wear it for work (unless it's a uniform or protective gear)
• Entertaining clients — HMRC doesn't allow this as a deduction
• Fines and penalties such as parking tickets
• The cost of commuting from home to your regular workplace
• Training that helps you move into a new field rather than improving skills for your current one
• Any mixed-use costs where the personal element can't be separated

If you're unsure whether something qualifies, it's better to ask than to claim it incorrectly.

You can claim any cost that is wholly and exclusively for your business. Common examples include:

• Office supplies and equipment
• Business travel (excluding the commute to a regular workplace)
• Professional fees such as accountancy costs
• Stock and materials
• Software subscriptions used for work
• Marketing and advertising
• A proportion of your home costs if you work from home
• Training directly related to your current trade

The golden rule is that the expense must be genuinely for business use. If it has a personal element, you can only claim the business proportion.

Capital Gains Tax applies when you sell or dispose of an asset that has increased in value. The main ones are:

• Residential property that isn't your main home (second homes, buy-to-lets, inherited property)
• Shares and investment funds held outside an ISA
• Cryptocurrency
• Business assets including goodwill
• Personal possessions worth more than £6,000, such as jewellery or art

Assets that are exempt include your main home (in most cases), anything held inside a Stocks and Shares ISA, your car, and UK government bonds (gilts).

The gain is calculated as the sale price minus the original purchase price and any allowable costs such as legal fees or improvements.

Usually not, if it was your main home for the entire time you owned it. Private Residence Relief (PRR) exempts the gain from CGT in that case, and you wouldn't normally need to report the sale to HMRC either.

However, CGT can apply — or PRR can be reduced — in these situations:

• You let the property out at any point during your ownership
• You used part of the property solely for business (not just occasional home working)
• The property wasn't your main home for the entire ownership period
• The garden or grounds are very large (over half a hectare)

In these cases, part of the gain may still be exempt, but you'll need to calculate how much.

If you're unsure whether your sale triggers a reporting requirement, message us on live chat.